Telecom
Tariff Increase Advocacy Gains Momentum as GSMA Report Reveals Industry Insights
While the advocacy for tariff increase remains under deliberations, revelations in the latest Groupe Spécial Mobile Association (GSMA) digital economy report have watered the ground for an increased tariff increase advocacy. The report, offering a deep dive into the sector’s dynamics, provides compelling arguments for adjusting tariffs to ensure sustainability and growth.
Highlighted in the report is the telecom sector’s significant contribution to Nigeria’s GDP. In 2023 alone, it accounted for 8% of the nation’s total GDP, a figure that swelled to 13.5% when considering the broader ICT ecosystem. The mobile industry’s overall contribution to GDP was estimated at a staggering 20 trillion NGN, with substantial tax revenues of 2.8 trillion NGN.
The sector’s potential to drive digitalisation across various domains is of paramount importance. The report projects a significant boost in GDP across sectors like agriculture, manufacturing, transport, trade, and government, translating into nearly 2 million jobs and an additional NGN 1.6 trillion in tax revenues by 2028.
The promise of 5G networks is poised to revolutionise operations, particularly in critical sectors like oil and mining, with real-time data transmission and remote monitoring enhancing efficiency. Digitalisation, especially in manufacturing and trade, holds immense potential for value addition and job creation, promising billions in additional tax revenues.
Despite Nigeria’s noteworthy internet usage figures, with 29% of the population regularly online, the sector faces challenges. The country boasts the lowest-cost data baskets in Africa, yet maintaining competitive mobile data network speeds remains essential. With an average speed of 21Mbps, Nigeria’s performance is comparable to neighbouring countries, underscoring the need for sustained investments.
However, sustaining this growth requires recognizing the capital-intensive nature of the telecom sector. Operators must continually invest in network maintenance and expansion, necessitating a conducive regulatory environment that ensures fair returns on investments.
Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, commenting during the report launch, said, “We raised several issues on the state of affairs of the telecom industry, and among the challenges articulated is the return on investment, stability of the infrastructure and the need for pricing rights. As an ecosystem, tariff hike is one of the sensitive issues affecting the telecom sector and has to be addressed by all stakeholders. We need to look at the state of affairs of the industry and examine holistically. There are ongoing obligations to our end users including infrastructure security. Tariff increase is a solution to solve multiple challenges of the telecom industry.“
The GSMA report positions the ongoing tariff adjustment deliberations as a strategic move to secure the sector’s long-term viability. With Nigeria’s digital future at stake, finding a balance between affordability for consumers and sustainability for operators is paramount to ensure continued growth and innovation in the telecom landscape.
Telecom
Telecom Services Risk Shutdown as Workers Embark on Strike
Nigeria’s telecom sector is at risk of shutdown as workers under the aegis of Private Telecommunications and Communications Senior Staff Association (PTECSSAN) have embarked on strike over sack, and poor working conditions among others.
This was as the union on Monday threatened to cripple telecommunications services nationwide.
Okonu Abdullahi, secretary-general, made this known in a statement on Monday while announcing the commencement of the strike.
Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), reacting to the development, said that the group is unknown to its members which include MTN, Globacom, Airtel, 9-mobile and other telcos in the country.
But Abdullahi, said that the action of his union “ has become inevitable because of the prevalent precarious working conditions our members are enduring in the sector, the refusal of the employers to recognise and respect the constitutional right of these workers to freely associate with the union, and the unjust sack of three members of the union,”
He noted that its members are over 800 working at various Nigeria telecoms company facilities, network centers and other critical telecommunications, including IHS and Huawei.
The union, among other things, is demanding the reinstatement of some of its sacked workers, recognition of the union, improved working conditions, and remittance of membership dues.
“The implications of the strike will be massive because we have told all our members not to respond to any service outage from our employers.
“The fact remains that there are outages every day, and if our engineers do not respond to those outages, subscribers in those areas will be affected,” he said.
However, Adebayo of ALTON, said that “This group is not known to us in ALTON, and the companies mentioned are not members of ALTON”,
Telecom
NCC Unveils DMS to Protect Mobile Phone Users
Nigerian Communications Commission (NCC) has announced the introduction of a Device Management System (DMS) aimed at bolstering security and protecting consumers in the country’s mobile device market.
It said the DMS will serve as a comprehensive Central Equipment Identity Register, creating a unified database for tracking and monitoring mobile devices across all network operators in Nigeria.
The new regulation, outlined in the ‘Type Approval Business Rule 2024’, aims to prevent phone theft, curb the use of counterfeit devices, and ensure compliance with established standards.
All mobile network operators are required to connect to the DMS and mirror network-related policies configured by the NCC, ensuring a uniform approach to device regulation.
This move is expected to significantly improve the security and integrity of Nigeria’s communication networks, protecting consumers and promoting a safer mobile ecosystem.
“NCC-DMS shall acquire the International Mobile Equipment Identity of all devices latching to the communication network and synchronize with international databases of IMEI repositories.
“NCC-DMS shall maintain a registry of all communication devices available in the Federal Republic of Nigeria,” the commission noted in the new rule.
A device registration fee was also introduced by the NCC for the NCC-DMS, separate from existing type approval fees. This fee will be mandatory for all registered devices.
The commission’s objective, first announced in 2021, is to enhance transparency, accountability, and national security in the telecommunications sector while ensuring the safe and efficient utilization of Nigeria’s communication infrastructure.
“To curtail the counterfeit mobile phone market, discourage mobile phone theft, enhance national security, protect consumer interest, increase revenue generation for the government, and reduce the rate of kidnapping.
“To mitigate the use of stolen phones for crime, and facilitate blocking or tracing of stolen mobile phones and other smart devices, one of the means to achieve this is through the deployment of Device Management System,” the commission said in a statement.
Telecom
Telecoms Workers Begin Nationwide Strike
Workers in the nation’s telecommunications industry under the aegis of the Private Telecommunications and Communications Senior Staff Association (PTECSSAN) will today (Monday) begin an indefinite nationwide strike over sack, and poor working conditions among others.
Among the employees going on strike include field maintenance engineers, transmission engineers, customer service engineers, fibre engineers, and other critical staff.
There are fears that strike could disrupt telecommunications services nationwide if not resolved quickly.
PTECSSAN had given notice of the strike in a statement signed by Mr Okonu Abdullahi, its general secretary.
Abdullahi said the strike had become necessary following alleged anti-labour practices including the refusal of the employers to recognise and respect the workers’ constitutional rights to freely associate with the union.
He alleged also that three members of the union were unjustly sacked. He said: “We shall not be suspending the planned indefinite strike action until our demands, which are as follows, are met:
“Immediate reinstatement of the three unjustly sacked workers: Sotola Sunday Kolawole, Ulu Ikechukwu Christopher and Alex Franklin C.”
“Immediate recognition of the fundamental right of the employees to freely associate with the union, “ he said.
According to the general secretary, other demands include immediate recognition of the union as the negotiating body for the employees on workers welfare.
He said also that the union was demanding the immediate remittance of membership dues into its account as earlier provided among others.
“We hope that these companies will utilise the seven-day window of this notice to meet our demands and avert the indefinite strike action,” Abdullahi said
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